OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to All Savers Insurance Company (All Savers) (Indianapolis, IN). The outlook assigned to both ratings is stable. All Savers is a wholly owned subsidiary of Golden Rule Financial Corporation (GRFC), and its ultimate parent company is UnitedHealth Group, Incorporated (UnitedHealth).
The ratings of All Savers reflect premium growth, positive underwriting and operating results and the support of UnitedHealth. In its three years of operation, All Savers has experienced rapid profitable growth in its small group and individual products. Somewhat offsetting these positive rating factors is the uncertainty regarding the future of small group and individual markets as the final provisions of the Patient Protection and Affordable Care Act are implemented in 2014. In addition, A.M. Best is concerned that rapid growth may put pressure on the currently sufficient level of risk-based capitalization at All Savers. However, UnitedHealth has the financial flexibility to provide support to All Savers if needed.
Key rating drivers that may lead to positive rating actions for UnitedHealth and its subsidiaries include substantial earnings growth, improvement in risk-adjusted capital at regulated entities and reduction in financial leverage. Key rating drivers that may lead to negative rating actions include a sizeable decline in risk-adjusted capital at UnitedHealth’s lead operating entity, UnitedHealthcare Insurance Company; significant weakening of operating performance across the enterprise; an increase in financial leverage beyond A.M. Best’s expectations; or substantial deterioration in interest coverage.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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